Africa’s telecommunications sector is undergoing a structural transformation as mobile operators increasingly monetize their networks through financial services. Mobile money is evolving from a supplementary telecommunications product into a significant earnings driver, creating new revenue streams and changing the investment case for major operators across the continent.
Kenya provides a strong example of this shift. According to Safaricom’s FY2025 results, M-Pesa revenue increased by 15.2% to Kshs 161.1 bn in FY2025 from Kshs 139.9 bn in FY2024, while its contribution to Kenyan service revenue increased by 1.8 percentage points to 44.2% from 42.4%. M-Pesa transaction volumes increased by 29.5% to 37.2 bn from 28.7 bn, while one-month active customers increased by 10.5% to 35.8 mn from 32.4 mn. The growth demonstrates the increasing contribution of financial services to Safaricom’s earnings beyond its traditional connectivity business.
The strategic value of this financial-services platform has also been reflected in recent capital allocation. Vodacom completed its acquisition of an additional 20.0% effective stake in Safaricom in June 2026 for USD 2.1 bn, increasing its ownership to approximately 55.0% from 35.0%. The Government of Kenya retained a 20.0% stake, while the remaining 25.0% continues to be publicly held through Safaricom’s NSE listing. The transaction allows Vodacom to consolidate Safaricom’s financial results and gives the group greater exposure to its telecommunications, technology and financial-services operations.
The investment significance extends beyond M-Pesa. Safaricom’s financial-services ecosystem includes consumer and business payments, lending, savings and international transfers. In FY2025, business payment revenue increased by 27.4% to Kshs 48.6 bn from Kshs 38.2 bn, while consumer payment revenue increased by 19.7% to Kshs 63.0 bn from Kshs 52.6 bn. This diversification allows the company to generate additional value from its existing customer and distribution infrastructure.
Airtel Africa provides a broader regional comparison. According to Airtel Africa’s FY2026 results, Airtel Money customers increased by 21.3% to 54.1 mn, while its active agent network expanded by 39.1% to 2.4 mn. Mobile money revenue increased by 28.4% in constant currency to USD 1.4 bn, while transaction value reached USD 196.0 bn during the year. Airtel Africa’s total customer base reached 183.5 mn across 14 markets, creating a substantial distribution platform for financial products.
The comparison highlights why mobile money is becoming increasingly important to telecom valuations. Operators can leverage existing networks, customer relationships and agent infrastructure to distribute payments, credit, savings and merchant services without building entirely separate financial distribution systems. As smartphone penetration and data usage increase, the addressable market for these services is also expanding.
For investors, this changes the way telecommunications companies can be assessed. Subscriber growth and average revenue per user remain important, but the ability to convert connectivity into higher-margin digital and financial services is increasingly relevant to revenue diversification and long-term earnings growth.
Vodacom’s increased ownership of Safaricom therefore represents more than a conventional telecommunications investment. It provides greater exposure to an integrated ecosystem in which connectivity, digital payments and financial services increasingly reinforce one another. As mobile money adoption expands across Africa, the competitive advantage may increasingly depend on how effectively operators transform their existing networks into diversified financial platforms.
